How to Efficiently Run Your New Business


Running your new business may not mean that you take charge right away. Ideally in your contract of sale there’ll be a hand over period in which you’ll be trained in the day-to-day operations of your purchase. Use any of these periods wisely as a time to critically assess the workplace as it currently is. For example, you may take the time to see how existing staff do their job and get them to explain their workplace processes. In some instances, formal standard operating procedures will vary to what is actually performed when completing a certain task, so identifying any gaps in this process will allow you to get a clearer picture of what needs to be updated in terms of internal communications.

sole proprietorshipIf you inherit staff from the previous ownership, remember that although there may be a mix of people who do not think or even act the same, this diversity cultivates success. As tempting as it is to replace staff with people who are more acquiescing to your anticipated, new management style, think carefully before transitioning them, they too may also need time to adjust to you.

Another valuable task to undertake when you’re running a new business is to audit its technological capability. Generally, tools will need to be experimented with then adjusted to suit the specificities of your business as part of a process of collective learning. If you don’t have the capability in-house, it could be worth getting a consultant in to assist you to review your company’s use of technology and make suggestions to streamline processes. Not only will improving a new business’s technological competency translate into improved organisational efficiency, but will free time for other activities such as research and development.

Once you’ve had a chance to see how the business is currently operating, that should inform how you will proceed to manage it. Even if you already have an existing management style, it will need to be adjusted to suit the new workplace it is being applied in, even if it’s in a similar business to your previous experience. For some background preparation in this area, research the varying approaches of organisational theories such as network theory, ecological theory, general systems theory and strategic choice theories. It’s completely fine to adopt aspects from several schools of thought to best suit your business. It may be of interest to know that due to increasing dynamic nature of business in areas of technology, risk management and market trends, strictly hierarchal organisational structures deliver lower levels of performance than flatter, cross functional models of organisation. Therefore, you may consider a more adaptive style of management to improve your efficiency.

So whether you’re at the stage of researching businesses for sale or are about to settle on one that you’ve already purchased, it’s important to approach its management firstly from a position of listening and learning. This enables you to develop a stronger and more relevant strategic plan that will lower operating costs and boost efficiency.

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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